Day Trading Online - How Losers Think Part II

Let's go on talking about how losers think with this day trading online series.

Going long in the market is something his mind has a fondness for . If prices fall, he figures that's the right time to buy. Rather than a price movement trader, a budding trader happens to be a price level trader . He doesn't think about value movements, but in terms of value . He makes purchases on days there is a decline.

Everyday logic just won't work in the market. The loser thinks that his natural reaction to news is invariably correct . The opposite is true . Natural reactions to new is wrong most of the time . The loser is mentally attracted to the negative news output of our society . When there is ebullient excitement he has a knee jerk reaction . Instead of going against the news, he slips into the market along with the news . His fascination can't be stopped with bullish and bearish events that are publicized . His mind just does not "cotton" to dull markets . He always seems to be buying on up days, buying on emotion . The herd instinct makes him buy on the first reaction in a topping formation , simply because of the "cheap" price - just because the price is cheap according to his mind .

Struggling and misery are enjoyed and his mind gets so caught up with this, that its own inertia traps and chains it . This person has never learned how to think using a day trading online course.

The mind of a loser doesn't think . It doesn't think, although it's supposed to. The mind is entrapped by emotion. The mind's processes become overwhelmed by unawareness, fear, insecurity, and greed. Sociologists claim that 85% of all the people on planet earth do not think . Of the remaining 15%, 13% think they think and the remaining 2% think . Can you believe it? Those that really think only amounts to 2% of the world's population! Being bright or stupid has nothing to do with it . Even stupid people can think - it's just that they don't ! An interesting corollary here is that 2% of people who think is about the same percentage of successful commodity traders . The 2% who think , know their market, price movements, reactions to factors, and more, act bored, have good discipline, and never fear, since they know the game. The percentage that only think they think, involve themselves with all the technical wiggle-waggles of chart formations . They become a pro at trading - especially as a result of a short-lived, recent success and they feel they have the holy grail that will keep them being successful . There is fear and insecurity in the back of his mind , - all the behavioral patterns that are non productive that have been engrained into them for years . He knows that they are still there . And then there is a leap of the market that grabs him, and his roots are shaken.

Without thinking , Mr. 13% ends up back with the other 85% that don't think. He has the idea that there is some conspiracy against him, by everyone, from the market to the floor traders. Instead of thinking about the experience, he feels it . All of his fears, get rid of rational thinking and without thinking he exposes himself , - to biting the bullet, taking risks, and jumping into the market again, since he thinks that a stance that is aggressive , (Mr. Macho) that struggling will bring profit , which will allow him to start over again.

( He is one that detests going home with bad news for the wife. Emotions grip him, during this event , just as he was when he was at the market place .)

It is sad, very sad . However, the ratio of thinkers to non-thinkers inevitably will never change .

In the future in this day trading online series we'll look at the winner's way of thinking .

Charles Drummond is a Canadian trader who has written nine books about trading and has created a day trading online called “Drummond Geometry." His biography and further information about his work can be found at the day trading online website.